Yesterday, the Mongolian dollar depreciated 40% against the U.S. dollar and the banks stopped selling U.S. dollars temporarily. This happened at the same time the Mongol Bank President resigned. The Mongol Bank is the same thing as our Federal Reserve. Banks had already become very tight about making any loans and has, at this time, stopped making loans for the time being.
The global economic problem had already been severely impacting the Mongolian economy along with a prolonged drought hurting the agricultural production in the country. Then of course there are internal battles going on in the political arena.
If anyone can endure an economic crisis or any other type of crisis then I would guess the Mongolians can probably do it much better then most. They are a very proud people with a very strong culture that still has an enormous tie to the rural country side that is basically all public property and open range. I don't know how they will work out of this but you would not want to bet against them.
Meanwhile, CHF International and the new local non-profit, Development Solutions, that I am working with, are forging ahead without missing a step. We are currently working on multiple scenarios that could be followed on the way to being totally self sufficient when CHF pulls out in about two and a half years. Since Development Solutions makes its income by working with new and developing businesses, it would be easier to make a go of it, if the economy was growing, rather then being on a downward spiral.
This morning when I trudged off very carefully to work along the icy streets and sidewalks it was a minus 32 degrees but I have learned that here in Mongolia, you don't say things when you get to the office like, 'Wow, it is really cold out there", until the temperature hits a minus 40 degrees. It is rather intimidating when women pass me on the ice in their high heels and relatively tight slacks and the guys go jaunting along with only a cap and nothing over there ears. I doubt that I will really acclimate to the climate before I leave in April but it has really not bothered me up to this point and I have not even worn my super warm clothes. I am glad though that I am not living in a yurt.
